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HMRC internal manual

Debt Management and Banking Manual

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HM Revenue & Customs
Updated
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VAT into IDMS: National Debt Pursuit Unit (NDPU)

This guidance is specific to the National Debt Pursuit Unit only for the monitoring of their Payment on Account taxpayers and Insolvent VAT Groups. No other office should manually create a VAT work item on IDMS.

Payment on Account (POA)

Payment on Account taxpayers continue to have their instalment information included on the Large Payers Information System (LAPIS). Following the review of the LAPIS report, any overdue POA instalments should be manually created on IDMS in OU 309818 C/W VAT following the guidance below. Where there is no open work item already on IDMS, any new work item created will default to the VAT Hopper and you will need to transfer the Taxpayer record and work item to OU 309818.

Creating POA debt work items on IDMS

Create a work item for POA debts on IDMS for each unpaid instalment using CREATE WORK ITEM.

Full guidance on how to use the CREATE WORK ITEM function is available in IDMSUG500300.

Only the ‘Debts to Crown’ work item type should be used.

Designatory Details

When you create a work item on IDMS, complete DESIGNATORY DETAILS.

IDMSUG500605 tells you more about DESIGNATORY DETAILS and how to use this.

New Work Item screen

Enter the reference as follows.

  • District no: The taxpayer’s LVO code from VISION R1 Screen
  • HOD type: B
  • Register No: The VAT Number.
  • Work Item type: Debts to Crown.

If there is no existing record, you will see the Create Taxpayer for Ref screen.

Enter the taxpayer’s name in the Name field.

If present, enter:

  • the Trading Style in the Capacity Name field
  • the address fields
  • any known phone numbers from DTR or EF
  • the VAT Registration Status i.e. Live or the Deregistration category.

Set the PLAR, Welsh Language, Insolvency signals as appropriate.

Create Work Item for Ref screen

Enter:

  • File Ind: B for the VAT HOD
  • the Account and Sub Number (ASN) is 6 characters long. This is the month and year the POA instalment is due in the format YYYYMM; for example, if the instalment was due in February 2011, the ASN would be 201102
  • Instal No: This is blank
  • Creation Date: The day after the date the POA Instalment was due
  • Current Collectible Amounts: The net amount due after any payments or adjustments have been accounted for
  • Latest due date: Creation date as above
  • AP/Year End: Creation date as above.

Once you have completed the CREATE WORK ITEM screen, enter any additional details available on Action History.

Once this has been done, the work items will be automatically linked and be available on the C/W VAT. If the taxpayer owner is with another office then transfer the Work Item to that office (for example, EIS, Insolvency).

If the LVO Code is 109:

  • issue a referral to the Customer Relationship Manager (CRM) seeking confirmation that DMB action can continue
  • transfer the Work Item to the correct OU for the taxpayer’s sector (309801-309816).

Amending or updating a work item on IDMS

Use AMEND WORK ITEM:

  • when you have created the work item on IDMS to add details of any payments received onto IDMS using AMEND WORK ITEM
  • to update IDMS, payments received and amendments required to debt amounts will need to be updated manually.

The following posting types should be used.

PYT Payment
   
AMD Amendment
DCH Dishonoured Cheque
REM Remission (Write Off)

Guidance on how to amend a work item on IDMS is available in IDMSUG500200.

ADA Downloads

After each ADA download, review IDMS to see if any duplicate new debt has downloaded through the VAT into IDMS interface and if it has:

  • amend any manual debts previously created to nil and
  • close the item
  • update Action history to note why the work item has been closed
  • continue to work the case through the Work Item received via the VAT into IDMS interface.

Further recovery action

Should further recovery action be required and it is proposed to send the taxpayer for CCP or EIS action, then the debt will need to be recreated under the correct work item types.

Insolvent VAT Groups

Following an Insolvent VAT Group notification from the National Insolvency Unit, create any outstanding debt in IDMS in OU304306 C/W VAT by following the guidance below.

Where there is no open work item already on IDMS, any new work item created will default to the VAT Hopper and you will need to transfer the Taxpayer record and work item to OU304306.

Creating Insolvent VAT Group debt item on IDMS

Create a work item for Insolvent VAT Group debts on IDMS using CREATE WORK ITEM.

Full guidance on how to use the CREATE WORK ITEM function is available in IDMSUG500300.

Designatory Details

When you create a work item on IDMS, complete DESIGNATORY DETAILS.

IDMSUG500605 tells you more about DESIGNATORY DETAILS and how to use this.

New Work Item screen

Enter the reference as follows.

  • District no: The taxpayers LVO code from VISION R1 screen
  • HOD type: B
  • Register No: The VAT Number
  • Work Item type: ‘Debts to Crown’.

If there is no existing record, you will see the Create Taxpayer for Ref screen.

You should:

  • enter:

    • the taxpayer’s name in the Name field
    • the Trading Style in the Capacity Name field if present
    • the address fields
    • any known phone numbers from DTR or EF
    • the VAT Registration Status; in other words, Live or the Deregistration category
  • set the PLAR, Welsh Language, Insolvency signals as appropriate.

Create Work Item for Ref screen

You must enter:

  • File Ind: B for the VAT HOD
  • the Account and Sub Number (ASN) is 6 characters long. This is the year and month of the debts ledger entry on VISION in the format YYYYMM; for example, period 02/11 would be 201102
  • Instal No: this is blank
  • Creation Date: Today’s date
  • Current Collectible Amounts: the net amount due after any payments or adjustments have been accounted for. This should be a total amount for the different liabilities within the same month
  • Latest due date: creation date as above
  • AP/Year End: creation date as above.

Once you have CREATE WORK ITEM screen, enter any additional details available on Action History. Where the work item contains different liabilities totalled together include the breakdown within Notes and Assets.

Once this has been done the work items will be automatically linked and be available on the C/W VAT. If the taxpayer owner is another office (for example, EIS Insolvency) then transfer the Work Item to that office.

If the LVO code is 109:

  • issue a referral to the Customer Relationship Manager (CRM) seeking confirmation that Debt management action can continue
  • transfer the Work Item to the correct OU for the taxpayer’s sector (309801 - 309816).

Amending or updating a work item on IDMS

Use AMEND WORK ITEM:

  • when you have created the work item on IDMS to add details of any payments received onto IDMS using AMEND WORK ITEM
  • to update IDMS, payments received and amendments required to debt amounts will need to be updated manually.

The following posting types should be used.

PYT Payment
   
AMD Amendment
DCH Dishonoured Cheque
REM Remission (Write Off)

Guidance on how to amend a work item on IDMS is available in IDMSUG500200.

Further recovery action

Should further recovery action be required and it is proposed to send the Taxpayer for CCP or EIS action, then you will need to recreate the debt under the correct work item types using VAT on Return, VAT Officers Assessment, VAT Penalty, VAT Prime/Auto Assessment, VAT Surcharge. Keep a record of the VAT Registration number for MIS purposes.

Recreating a work item

Where further recovery action is appropriate, you will need to close down the ‘Debts to Crown’ work item case on IDMS. Cases suitable for EIS action will need to be referred to LAST prior to EIS referral.

Identify the debt periods and the correct work item types from VISION.

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Previous closed work item

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Debt not previously advised to IDMS

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Creating nil debts

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Referring a case to LAST

Ensure note details on IDMS are clear on the action to be taken against the solvent group member or members.

Transfer the work items only to LAST OU372601 changing the role to C/W CCP. The Taxpayer Owner should remain with the Insolvent VAT Groups Team OU 304306.

Send an email of the case being referred for the attention of the appropriate LAST team contact.

Retain a record of the VAT registration and amount referred for MIS purposes.

Recovery action complete

Once EIS action is complete and the subsidiary company member has been wound up, the details are passed back to the National Insolvency Unit (NIU). The NIU will issue a claim for the subsidiary company’s debt and close down the nil work item on IDMS.